FARM-TO-FORK

1. What are the top three risks facing the farm-to-fork sector?

The top three risks across farm-to-fork vary slightly by each segment. But the common ones include: brand and reputation, food safety and sanitation, supply chain, cyber/privacy breach, and employment practices liability. Virtually every farm-to-fork company includes those exposures among their top risks.

2. How can companies best mitigate the risks of a food-borne illness?

Communication is a key ingredient to educate the public, suppliers, and employees. The World Health Organization identifies five keys to a safer food supply: (1) sanitation (supplier, employer, and equipment); (2) avoiding cross contamination; (3) proper cooking techniques; (4) storage/holding temperatures; and (5) using safe water and raw materials.

3. Why is supply chain management critical for food and beverage companies?

A comprehensive review of the supply chain, focusing on all suppliers not only tier-one suppliers, is critical. Overseeing and frequently monitoring suppliers provides more opportunities to deliver the end consumer the safest product possible. While implementing a continuous improvement process, you’ll identify new risks associated with product, equipment, transport, and staffing.

4. How has cyber risk impacted the various farm-to-fork sectors?

The agriculture and food sector, like most, rely heavily on computers to produce and deliver products. So, for example, hackers could infiltrate major supply chains and disrupt the transportation of goods where they are needed, leaving some areas without food and beverages. Or, hackers could access systems that control food irradiation or the amount of additives, potentially poisoning food. On the retail side, the top cyber risk remains identity theft.

5. What trends are you seeing within the food and beverage industry with regards to employment liability risks?

Employment practices (including wage and hour) loss experience for the food and beverage industry is expected to continue to be challenging. New Fair Labor Standards Act regulations on overtime pay would increase the number of employees entitled to overtime pay and potentially increase wage-and- hour suits filed. And broader interpretations of joint employer relationships will increase losses for both traditional employment practices liability claims as well as wage-and-hour allegations.